Stocks - Real Estate Stocks Jump in Midday Trading

Jul 31, 2018

Real estate stocks surged in midday trading in the wake of solid quarterly results and a drop in interest rates.

The S&P Real Estate sector index rose 2% at 11:35 AM ET (15:35 GMT).

American Tower (NYSE:AMT) was among the biggest gainers of the index components, rising about 4.7%. The company reported numbers before the bell that beat on the top and bottom lines.

Also rising sharply were Alexandria Real Estate (NYSE:ARE), which issued encouraging guidance and gained about 4.4% and United Dominion Realty (NYSE:UDR), which rose about 4.4%.

Along with the positive results, real estate stocks benefitted from a drop in rates after the Federal Reserve’s favorite inflation gauge showed a tame rise in prices for June, underlining the idea that the Fed can hike at a modest pace.

The core PCE price index, which excludes food and energy, rose 0.1% month over month and 1.9% year over year.

The United States 10-Year yield fell about 0.5%.

Industrial and transportation stocks also rose in midday trading after a report that the U.S. and China are restarting trade talks that could avoid an escalation in their trade battles.

Deere (NYSE:DE), FedEx (NYSE:FDX) and Caterpillar (NYSE:CAT) were all in the green.